FGEN undervalued
First Gen Corporation ( FGEN ) and subsidiaries earned $183 Million for the period 1H 2020. What is better is that it was able to translate such earnings into cash from operations of $302 Million. The cash generated from operations allow FGEN to bolster its liquidity. FGEN’s balance sheet has a cash of $748.7 Million as of end of 1H 2020. That is an increase of 20% from the end of 2019. Only around $36.7 Million were used by FGEN for capital expenditures. This is a testament to the efficiency and flexibility of operating a natural gas power plant. The low capex allows FGEN to pare down its debt. Long-term debt was down by around $200 Million from $1.6 Billion to $1.4 Billion. FGEN is an efficient and a flexible power company but underappreciated by the market. FGEN is undervalued. FGEN’s undervaluation by the market has been noticed by KKR , the giant US private equity pioneer. Just this June KKR through its Valorous Asia Holdings Pte. Ltd. made a tender offer of 22...